Consultation outcome

Freedom and choice in pensions

This consultation was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Download the full outcome

Freedom and choice in pensions: government response to the consultation

Freedom and choice in pensions: government response to the consultation (print file)

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Written Ministerial Statement: pensions

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One page factsheet explainer: private sector defined benefit transfers

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Detail of outcome

This response document outlines the further decisions that the government has taken to achieve the reforms announced at Budget 2014, which give individuals greater flexibility in accessing their pension savings.

The written ministerial statement gives an overview of the government’s response and the full details of decisions with regard to private sector defined benefit pension schemes, which was set out in full before markets opened.

The Treasury has also published a simple factsheet that explains the decision on private sector defined benefit transfers.

Original consultation

This consultation ran from to

Summary

This consultation seeks views on details of the government’s plans to offer greater flexibility in accessing pensions.

Documents

Freedom and choice in pensions

Freedom and choice in pensions (print file)

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Consultation description

Budget 2014 announced the most fundamental change to how people access their pension in almost a century. The government proposes that from April 2015 people will be able to access their defined contribution pension savings as they wish during retirement, subject to their marginal rate of income tax. The 25% tax free lump sum will continue to be available.

This consultation outlines the government’s proposals for changing the tax rules to allow people to access their defined contribution pension savings and for introducing a guarantee that everyone with a defined contribution pension will be offered free and impartial face-to-face guidance on their financial choices when they retire.

The government would like to gather views on its proposals. Once the consultation closes on 11 June 2014 the government will consider all responses and publish a ‘summary of responses’. This will set out how the government intends to proceed.

The government would particularly, but not exclusively, be interested to hear from:

  • individuals
  • consumer groups
  • employers
  • providers of existing retirement income products
  • the wider pensions industry

Update 21 March 2014

A revised PDF was uploaded after a correction was made to page 26, paragraph 3.33. Full details are included within the correction slip at the start of the document.